Are you looking to buy a home before the year comes to a close? Consider the following real estate predictions before house hunting in the final months of 2019.
Millennials Make Their Move
The long-standing belief that millennials cannot afford to settle down is starting to shift. In the second half of 2019, millennials are expected to continue the trend of first-time home buying.
According to a recent Forbes article, more than half of all mortgages originated by Fannie Mae and Freddie Mac went to first-time home buyers in 2018. With millennials hitting their prime home buying years, those numbers are expected to grow.
Since 2017, this generation has accounted for the largest share of mortgage originations in the country. In short, millennials are ready to buy.
Home Prices Will Rise
Home prices have been on the rise since 2012. While there was a slowdown in price appreciation between 2017 and 2018, this helped improve affordability for many would-be buyers, especially as wage growth accelerated.
Some experts predict a rising demand against limited inventory of homes for sale will accelerate house price appreciation. The most recent Home Price Index Forecast from CoreLogic supports this theory, predicting a 5.6 percent increase in home prices by May 2020.
Mortgage Rates Will Stay Low
According to Freddie Mac, mortgage rates hit their lowest point since 2016 last month, averaging 3.80 percent. The decline caused a surge of refinancing in late June, when refinances accounted for more than half of all mortgage activity in a single week.
A chief economist at Fannie Mae told Forbes, “The Fed has moved to a bias toward easing, as global activity has slowed. Interest rates have fallen as a result and could move lower if the Fed acts to lower rates as insurance for economic growth”.
Could 2019 be the year you become a first-time home buyer? Start your search with By Carrier’s active communities today!